{"id":39247,"date":"2020-11-04T14:03:15","date_gmt":"2020-11-04T06:03:15","guid":{"rendered":"https:\/\/zegal.com\/?p=39247"},"modified":"2022-04-12T14:14:39","modified_gmt":"2022-04-12T06:14:39","slug":"covid-19-impact-australian-property-market","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-sg\/blog\/post\/covid-19-impact-australian-property-market\/","title":{"rendered":"How has Covid-19 impacted the Australian property market?"},"content":{"rendered":"<div class=\"_1yEvn\">\n<div class=\"_2wZrM _2E3OB _3BIio\" tabindex=\"-1\" data-hook=\"post-title\">\n<p data-hook=\"post-title\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-39248\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-1280x853.jpg\" alt=\"australia property\" width=\"1280\" height=\"853\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-1280x853.jpg 1280w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-320x213.jpg 320w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-768x512.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-1536x1024.jpg 1536w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-2048x1366.jpg 2048w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-640x427.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-1024x683.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-1200x800.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><\/p>\n<p class=\"_1gHzn _2M4wi blog-post-homepage-title-font blog-post-homepage-title-color blog-post-title-color post-title blog-hover-container-element-color _1EQZr blog-post-homepage-title-color blog-post-homepage-title-font\" data-hook=\"post-title\"><span style=\"font-size: inherit; text-align: justify; font-weight: 400;\">As Australia is now more than a month into COVID-19 lockdown restrictions and Australians are settling into this new normal, it goes without saying that it has been a tumultuous month for the economy and the property markets.<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"yF0IC blog-post-homepage-description-style-font blog-post-homepage-description-color\" data-hook=\"post-description\">\n<article class=\"blog-post-description-font\">\n<div class=\"post-content__body\">\n<div class=\"lV_uZ _1LHlu _1ltva\" data-rce-version=\"7.19.2\">\n<div class=\"kcuBq _1PkHV blog-post-homepage-description-style-font _3f8WX uatYj\" dir=\"ltr\">\n<div class=\"kaqlz _1FQ9t blog-post-homepage-description-style-font zJfAe\">\n<h4 id=\"viewer-4up6e\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><strong>Decrease in property prices<\/strong><\/h4>\n<p id=\"viewer-4juc\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">At the beginning of this month, settled property sales had been trending higher and most cities had executed a recovery from the preceding housing market downturn. The trends were generally positive across each of the capital cities, as mentioned by Michael Yardney, Director of Metropole Property Strategists.<\/p>\n<p id=\"viewer-53kse\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">However, as Australia enters their 6th week of lockdown along with the government\u2019s shutdown of non-essential services, the temporary ban on auctions, open inspections and face to face meetings have made a negative impact on the property markets. We are starting to see a dip in housing markets due to a decrease in consumer confidence and weaker economic conditions, as the lockdown restrictions progress.<\/p>\n<p id=\"viewer-6f0rv\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">According to CoreLogic\u2019s hedonic house price index, there has been a loss of momentum in housing value growth rates since mid-March, with data through to mid-April seeing a continuation of this trend. As the combined capital cities measure shifts into negative territory week-by-week for the first time since early August last year. The graph below expresses this change in values for the combined cities.<\/p>\n<div id=\"viewer-cakgi\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">\u00a0<\/div>\n<div id=\"viewer-9hi7t\" class=\"q2uC4 _3kAGd\">\n<div class=\"c-Mgr _2Mq66 _2Mq66 _7gPc2\">\n<div class=\"_1Lhwj image-container _2mwxs\" tabindex=\"0\" role=\"button\" data-hook=\"imageViewer\">\n<div class=\"xdJBZ\" role=\"img\"><img decoding=\"async\" class=\"_1Fjtc _2E02D\" src=\"https:\/\/static.wixstatic.com\/media\/d2d989_9d1b78f8245a4d65ae3ded548271f893~mv2.png\/v1\/fit\/w_300,h_300,al_c,q_5\/file.png\" data-pin-url=\"https:\/\/www.fraxtor.com\/blog-1\" data-pin-media=\"https:\/\/static.wixstatic.com\/media\/d2d989_9d1b78f8245a4d65ae3ded548271f893~mv2.png\/v1\/fit\/w_1000%2Ch_514%2Cal_c%2Cq_80\/file.png\" \/><img decoding=\"async\" class=\"_1Fjtc _2lDdg\" src=\"https:\/\/static.wixstatic.com\/media\/d2d989_9d1b78f8245a4d65ae3ded548271f893~mv2.png\/v1\/fill\/w_740,h_284,al_c,q_90,usm_0.66_1.00_0.01\/d2d989_9d1b78f8245a4d65ae3ded548271f893~mv2.webp\" data-pin-url=\"https:\/\/www.fraxtor.com\/blog-1\" data-pin-media=\"https:\/\/static.wixstatic.com\/media\/d2d989_9d1b78f8245a4d65ae3ded548271f893~mv2.png\/v1\/fit\/w_1000%2Ch_514%2Cal_c%2Cq_80\/file.png\" \/><\/div>\n<div class=\"\">\u00a0<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"viewer-a9a9h\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">\u00a0<\/div>\n<p id=\"viewer-1tmfb\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">With the sharp incline in unemployment expected to hit 10 per cent, Shane Oliver, AMP Capital\u2019s chief economist, believes this could mean an escalation of debt-servicing problems, forced sales and plummeting property prices of up to 20 per cent. This may result in properties being offered on the market at distressed prices.<\/p>\n<h4 id=\"viewer-ali2t\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><strong>Decrease in interest rates<\/strong><\/h4>\n<p id=\"viewer-6rlkb\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">The Reserve Bank Board (RBA) reduced the cash rate twice in March 2020, to 0.25 per cent, which aims to flood the market with cash to stave off a recession. With the cash rate sitting at a new record low, we expect costs of fixed-rate mortgage products to reduce significantly. To hopefully, boost the cash flow of businesses and the household sector as a whole and might be the perfect opportunity to invest for some.<\/p>\n<h4 id=\"viewer-c7agn\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><strong>Investor\u2019s perspective<\/strong><\/h4>\n<p id=\"viewer-a12ld\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">With the plummeting property prices expected to drop to as low as 20 per cent along with the cash rate at an all-time low of 0.25 per cent, this might be the perfect time to invest in property. If you are a genuine buyer, in a good financial position, with good job security; this might be the opportunity for you.<\/p>\n<p id=\"viewer-6jqmc\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">From an investment perspective, real estate is a defensive investment and are usually less volatile than other investments. Real estate provides long term returns as the price increases, in addition, the stable cash flow with the ability to tailor rent to manage occupancy serves as a source of income till the eventual sale.<\/p>\n<p id=\"viewer-5iiij\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">Despite the great fluctuation of real estate prices over the years through the various downturns (as depicted in the chart above), Australia\u2019s popularity has resulted in an increasing and continuous international immigration over the years. Klear Picture, an investment specialist firm predicts, that this trend is not expected to slowdown in the coming years. With significant continual demand, a shortage of residential properties in the country will continue to rise, which will translate to better rental yields and rising capital growth for investors. This displays the perfect opportunity for property investors looking for investments with positive growth potential and high return on investment.<\/p>\n<h4 id=\"viewer-8vpch\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\"><strong>Conclusion<\/strong><\/h4>\n<p id=\"viewer-5v5p5\" class=\"XzvDs _208Ie ljrnk blog-post-text-font blog-post-text-color _2QAo- _25MYV _1Fao9 ljrnk public-DraftStyleDefault-block-depth0 public-DraftStyleDefault-text-ltr\">The coronavirus outbreak will clearly impact the Australian housing market, as the lockdown progresses. This is largely due to the decrease in consumer confidence, weaker global economic conditions and lockdown restrictions. We expect this situation to lower the price expectations of current property owners who are unable to weather the coming market uncertainties hence presenting a good opportunity for investors to pick up such distressed properties. In addition, with the RBA cash rate going down, investors who lock in mortgage contracts during this period can expect lower cost of funding their property investments.<\/p>\n<p><em><a href=\"https:\/\/www.fraxtor.com\/\">Fraxtor<\/a>\u00a0is an innovative Real Estate Co-investment Platform. With a small amount of capital, you can invest in any type of property worldwide, with your friends, family and fellow investors.<\/em><\/p>\n<p class=\"p1\" style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p class=\"p2\" style=\"text-align: center;\"><i>The opinions expressed in the column above represent the author\u2019s own.<\/i><\/p>\n<p class=\"p3\" style=\"text-align: center;\"><span class=\"s1\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/span><\/p>\n<h5 style=\"text-align: center;\"><a href=\"https:\/\/zegal.com\/zegal-partners\/\">BECOME A ZEGAL REFERRAL PARTNER<\/a><\/h5>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/covid-19-impact-singapore-home-rental-market\/\">FURTHER READING: How Has Covid-19 Affected Singapore&#8217;s Property Market?<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/asia-apps-work-remotely\/\">READ MORE: 6 Apps Helping You Work Remotely<\/a><\/p>\n<p><b>Article syndicated with permission from https:\/\/www.fraxtor.com\/post\/how-has-covid-19-impacted-the-australian-property-market<\/b><\/p>\n<p>Fraxtor is a Real Estate Investment Platform that empowers its community of investors by providing access and convenience to invest in niche Real Estate Investments.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As Australia is now more than a month into COVID-19 lockdown restrictions and Australians are settling into this new normal, it goes without saying that it has been a tumultuous month for the economy and the property markets. Decrease in property prices At the beginning of this month, settled property sales had been trending higher [&hellip;]<\/p>\n","protected":false},"author":119,"featured_media":39248,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[42],"tags":[1812,10757],"usecases":[],"businesstypes":[],"country":[],"class_list":["post-39247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customers","tag-australia","tag-covid-19"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How has Covid-19 impacted the Australian property market? | Zegal Singapore<\/title>\n<meta name=\"description\" content=\"As Australia endures COVID-19 lockdown restrictions it has been a tumultuous time for the economy and property markets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-sg\/wp-json\/wp\/v2\/posts\/39247\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How has Covid-19 impacted the Australian property market?\" \/>\n<meta property=\"og:description\" content=\"As Australia endures COVID-19 lockdown restrictions it has been a tumultuous time for the economy and property markets.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zegal.com\/en-sg\/blog\/post\/covid-19-impact-australian-property-market\/\" \/>\n<meta property=\"og:site_name\" content=\"Zegal Singapore\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/getzegal\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-04T06:03:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-12T06:14:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/10\/pexels-belle-co-783682-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Fraxtor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@getzegal\" \/>\n<meta name=\"twitter:site\" content=\"@getzegal\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fraxtor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/blog\\\/post\\\/covid-19-impact-australian-property-market\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/blog\\\/post\\\/covid-19-impact-australian-property-market\\\/\"},\"author\":{\"name\":\"Fraxtor\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/#\\\/schema\\\/person\\\/55359032eb656bc4872f555ec7be4895\"},\"headline\":\"How has Covid-19 impacted the Australian property market?\",\"datePublished\":\"2020-11-04T06:03:15+00:00\",\"dateModified\":\"2022-04-12T06:14:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/blog\\\/post\\\/covid-19-impact-australian-property-market\\\/\"},\"wordCount\":783,\"publisher\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/blog\\\/post\\\/covid-19-impact-australian-property-market\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/zegal.com\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/pexels-belle-co-783682-scaled.jpg\",\"keywords\":[\"Australia\",\"covid-19\"],\"articleSection\":[\"( Customers )\"],\"inLanguage\":\"en-SG\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/blog\\\/post\\\/covid-19-impact-australian-property-market\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-sg\\\/blog\\\/post\\\/covid-19-impact-australian-property-market\\\/\",\"name\":\"How has Covid-19 impacted the Australian property market? 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